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4.2  Demonstrating efficiency

Agencies need to demonstrate that their service offering is efficient, in that it meets the needs of stakeholders, and represents value for money.

A key way of demonstrating efficiency is by reporting against a set of performance metrics. The stage 2 CRIS should include details of how the agency intends to measure its performance. This should be updated regularly.

Efficiency isn't necessarily about making the service as low cost as possible. Consultation with stakeholders to understand their needs and to design services that meet these needs is crucial. Agencies should test with stakeholders the way in which they should be charged.

For fee structures with a degree of uncertainty in the level of charging (for example, variable fee structures and those based on hourly rates), there should also be safeguards in place to ensure that fees are reasonable and justifiable. Suggestions for safeguards are discussed in more detail in section 5.4.

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